Budget 2026 speech

Chancellor John Healey presented the Budget 2026 speech, framing it as a measure to support working people in Britain during a period of global economic uncertainty. He highlighted immediate actions alongside a long-term strategy, including the 10-Year Plan for Britain and next year’s Spending Review. The speech acknowledged the pressures of global trade tensions and geopolitical conflicts, which are impacting domestic economic conditions. Healey also paid tribute to his predecessor, the UK’s first female Chancellor, for decisions that boosted investment and reduced child poverty.

The Chancellor described the current economic environment as marked by 'global economic storms,' citing trade tensions and the prolonged conflict in Ukraine as key drags on growth. He noted that the war in the Middle East is influencing the Office for Budget Responsibility’s (OBR) forecasts, with rising oil and gas prices driving up costs for families and businesses. The OBR’s latest projections indicate an additional £14 billion in debt interest payments this year due to these pressures. The government is collaborating with allies to address the conflict and restore stability in critical shipping routes.

Healey emphasized that the economic challenges are shaping every policy decision, including measures to address energy costs, national security, public service transformation, and housing. The Budget aims to provide fresh hope for Britain’s future by balancing immediate support with long-term planning. The Chancellor also acknowledged the contributions of Treasury Ministers and officials in preparing the Budget and thanked the OBR for its forecasts.

The speech underscored the government’s commitment to navigating economic headwinds while delivering on promises to the British people. Healey highlighted the need for resilience in the face of rising borrowing costs across G7 nations and the impact of global conflicts on domestic finances. The Budget reflects a strategy to steer through these challenges while maintaining public service priorities and economic stability.